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There are a few major problems with this article. First, the authors say: "In this paper, we simply sought to dispel the myth that globalization generates no l
by zzzmarcus 18y ago
There are a few major problems with this article.
First, the authors say: "In this paper, we simply sought to dispel the myth that globalization generates no losers." In my experience, If you start out seeking to confirm your biases, you generally will.
Second, all their evidence is correlation not causation. I'm sure the correlations are strong, but there is no way to prove that H-1B workers actually caused wages to go down. There are too many external factors.
Finally, unless there is some relation shown between the companies' profitability and the wages they're paying, you can't rule out the possibility that the less expensive H-1B workers and lower wages for American workers didn't actually save the American worker's jobs by keeping costs down and their employers in business. Lower wages and more H-1B workers could just mean that the company is doing what it has to do to stay afloat. Less pay is better than no job at all. That's just one of many possible scenarios.
The paper isn't out yet, but as of now, their argument seems pretty weak.